Brokers now facilitate 71.7% of mortgages

Mortgage brokers facilitated 71.7 per cent of all new residential home loans between July and September 2022, according to the latest data released by research group Comparator, a CoreLogic business and commissioned by the Mortgage & Finance Association of Australia (MFAA).

Comparator compiles quarterly broker statistics for the MFAA by calculating the value of loans settled by 18 of the leading brokers and aggregators as a percentage of ABS housing finance commitments. 

This is the first time mortgage broker market share has exceeded 70 per cent in the 40 consecutive quarters the measure has been tracked.

The figure is a 4.8 percentage point increase compared to the 66.9 per cent achieved in the same quarter in 2021 and an 11.6 percentage point increase on the 60.1 per cent recorded in the September 2020 quarter.

It continues a record-breaking year after brokers were responsible for a record 69.5 per cent share of broker-written mortgages and $177.07 billion in settled residential home loans in the quarter ended March 2022.

A total of $94.4 billion in home loans was settled by mortgage brokers in the three months to September, according to the MFAA — also the highest figure observed for a September quarter and a 1.08 per cent year-on-year increase. 

“Buying a home is often one of the most important financial decisions many Australians will make in their life. The fact we now have seven out of 10 borrowers choosing to use the experience and services of a mortgage broker to help them navigate their finance options is a testament to the trust and confidence that Australian home buyers have in mortgage brokers,” said MFAA chief executive, Anja Pannek.

“This result is also against the implementation of a number of reforms over the past five years, including the unrivalled Best Interest Duty (BID), that serves to continue to engender trust and confidence in the channel.

“With a backdrop of a rising interest rate environment, and with many borrowers reverting from fixed to variable rates in 2023, mortgage brokers are also well placed to support their clients to understand their options and select the product best suited to them. This may include negotiating a more competitive rate with their client’s current lender or refinancing to a different product that is in their best interests.”

[Related: Broker market share will hit 70% in 5 years: Aussie CEO]